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Ukraine to propose new gas price formula to IMF, - Reuters
09:52, 7 October 2017
Ukraine to propose new gas price formula to IMF, - Reuters

According to the new proposal by Ukraine, the price will increase by 4.8%, while the current system requires a 17.6% increase

09:52, 7 October 2017

Open source

Ukraine will propose a new formula to the IMF to calculate the gas price for households next week, according to which the price will stay the same until July 2018, as  Reuters reports with a link to their sources.

If Finance Minister Oleksandr Danylyuk and the IMF don’t find a common ground, Ukraine would have two options, the source said: either to comply with the demand of the IMF, or “say we can live without the IMF, that Ukrainians are worth more than the IMF, not to care about this cooperation and take a political decision, approve the formula and that’s it”.

Related: IMF approves intention to provide Ukraine with next tranche after pension reform

In order to receive the next IMF tranche of $17,5 billion, Ukraine has to have a sustainable gas pricing and introduce a pension reform. According to the new proposal of the Ukrainian government, the price will increase by 4.8%, while cooperation with the IMF requires a 17.6% increase. The source says that such a price increase could provoke social unrest.

Naftogaz Ukraine previously estimated that the gas prices should increase by 18,84% starting this October. The current gas price for households is around $262 per thousand cubic meters, plus transport costs, currently calculated at more than $30 per 1,000 cubic meters.

Related: Siemens to not produce gas equipment for Ukraine, - Naftogaz head

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